,,ii  #aaf? ,,congress  #b;d ,session   
,s4 #cdgg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,m>* #ab1 #bjbj,ms4    
,s9ema 7= h]self & ,mr4 ,romney7        
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,heal?1 ,education1 ,labor1 & ,p5sions  
,a ,,bill  ,to e/abli% a mat*$ sav+s    
program = l[-income /ud5ts4  #a4 ,%ort  
title ,?is ,act may be cit$ z ! ,e>n to 
,le>n ,act4  #b4 ,f9d+s ,congress f9ds !
 foll[+3 7#a7 ,skyrocket+ co/s ( high]  
education are outpac+ available f9ancial
 aid4 ,individuals 9 ! ,unit$ ,/ates owe
 m ?an #a1ejj1jjj1jjj1jjj 9 /ud5t loan  
debt1 & m ?an #c1jjj /ud5t loan borr[]s 
default on a /ud5t loan e day1 _m ( :om 
left college be=e f9i%+ a degree4  7#b7 
,! co/ ( pay+ = public high] education &
 work=ce tra9+ programs cont9ues to rise
 :ile ! pur*as+ p[] ( ,f$]al ,pell      
,grant aid has significantly dim9i%$4   
7#c7 ,! conflu5ce ( ^! issues =ces      
prospective /ud5ts to make ! t\gh *oice 
betwe5 =ego+ po/second>y education &    

borr[+ en\gh money to pay = college1 an 
am\nt t is (t5 _m times _! annual sal>y 
& c rema9 a f9ancial burd5 = decades    
aft] ^! /ud5ts graduate4  7#d7 ,! high] 
rates ( loan del9qu5cies & default among
 l[- & mod]ate-income populations (t5   
lead to increas$ f9ancial h>d%ip1 few]  
assets1 & l[] net wor?4  7#e7 ,9 #bjac1 
! ,brook+s ,in/itute f\nd t ! increas+  
debt burd5 repres5ts a drag on rec5t    
graduates & also s]ves z a det]r5t to   
w\ld-be /ud5ts :o may "q ! trade-(f     
betwe5 ! debt burd5 & ! pay(f ( a       
college degree4  7#f7 ,dur+ ! academic  
ye> #bjae-bjaf ! ,dep>tm5t ( ,education 
f\nd t ne>ly #c 9 #d /ud5ts exp]i5ce    
unmet ne$1 & t unmet ne$ among college  
/ud5ts has ris5 by #bc p]c5t s9ce       
academic ye> #bjaa-bjab4  7#g7 ,! ,f$]al
 ,res]ve ,sy/em has det]m9$ /ud5t loan  
paym5ts are displac+ retirem5t sav+s1   
home own]%ip1 small bus9ess developm5t1 
& o!r =ms ( build+ weal?4  7#h7 ,!      
,economic ,well-,be+ ( ,u4,s4 ,h\seholds
 9 #bjah report by ! ,f$]al ,res]ve f\nd

 t two-?irds ( graduates ) a ba*elor's  
degree or high] feel t _! educational   
inve/m5t paid (f f9ancially1 b only #c 9
 #aj /ud5ts :o />t$ high] education     
programs b did n complete a degree %>e  
?is view4  7#i7 ,! ,unit$ ,/ates urg5tly
 ne$s a new national1 innovative approa*
 to f9ancial aid to help l[-income      
/ud5ts a*ieve _! educational goals1     
graduate ) af=dable am\nts ( /ud5t loan 
debt1 & improve _! f9ancial capability4 
#c4 ,purposes ,x is ! purpose ( ?is ,act
 to-- 7#a7 e/abli% a prov5 & innovative 
mat*$ sav+s program = l[-income /ud5ts t
 provides ! f9ancial res\rces & support 
^? /ud5ts ne$ to atta9 _! educational   
goals2  7#b7 provide a mu*-ne$$         
supplem5t to traditional f9ancial aid   
options ?r\gh mat*$ sav+s2  7#c7 give   
/ud5ts ! tools to succe$ by giv+ /ud5ts 
! opportunity to inve/ 9 _! education & 
to improve _! f9ancial capability ?r\gh 
f9ancial emp[]m5t tra9+ & success coa*+2
 &  7#d7 help /ud5ts-- 7,a7 develop     
heal?y f9ancial habits & life skills2   

7,b7 prep>e to emb>k on a lifetime (    
heal?y f9ancial practices aft]          
graduation2 &  7,c7 m9imize or elim9ate 
/ud5t loan debt4  #d4 ,def9itions ,9 ?is
 ,act3 7#a7 #ebi acc\nt ,! t]m #ebi     
acc\nt means a qualifi$ tuition program 
z def9$ 9 section #ebi7;b7 ( ! ,int]nal 
,rev5ue ,code ( #aihf4  7#b7 ,co/ (     
att5dance ,! t]m co/ ( att5dance has !  
mean+ giv5 t t]m 9 section #dgb ( !     
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajhgll74  7#c7 ,cu/odial     
acc\nt ,! t]m cu/odial acc\nt means a   
f9ancial acc\nt e/abli%$ = ! b5efit ( an
 eligible /ud5t1 :i* %all be treat$ z a 
tru/ if ! assets ( ! cu/odial acc\nt are
 held by a bank 7z def9$ 9 section      
#djh7n7 ( ! ,int]nal ,rev5ue ,code (    
#aihf 7#bf ,u4,s4,c4 #djh 7n777 or ano!r
 p]son :o demon/rates1 to ! satisfaction
 ( ! ,secret>y1 t ! mann] 9 :i* su*     
p]son w adm9i/] ! cu/odial acc\nt w be  
consi/5t ) ! requirem5ts ( ?is ,act4    
7#d7 ,educational sav+s acc\nt ,! t]m   
educational sav+s acc\nt means an acc\nt

 t is-- 7,a7 a cu/odial acc\nt2 or  7,b7
 a #ebi acc\nt4  7#e7 ,eligible         
educational in/itution ,! t]m eligible  
educational in/itution means ! foll[+3  
7,a7 ,in/itution ( high] education ,an  
in/itution ( high] education1 z def9$ 9 
section #aja or #ajb ( ! ,high]         
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajja1 #ajjb74  7,b7 ,area c>e] &       
te*nical education s*ool ,an area c>e] &
 te*nical education s*ool1 z def9$ 9    
section #c7c7 ( ! ,c>l ,d4 ,p]k9s ,c>e] 
& ,te*nical ,education ,act ( #bjjf 7#bj
 ,u4,s4,c4 #bcjb7c774  7#f7 ,eligible   
entity ,! t]m eligible entity means a   
,/ate or a nonpr(it organization4  7#g7 
,eligible /ud5t  7,a7 ,9 ,g5]al ,! t]m  
eligible /ud5t means an individual :o-- 
7i7 is select$ to p>ticipate 9 a college
 mat* sav+s program2  7ii7 has be5      
admitt$ to an in/itution ( high]        
education2  7iii7 is a /ud5t f a        
l[-income family1 z det]m9$ by !        
eligible entity2  7iv7 successfully     
completes a requir$ pr]equisite p]sonal 

f9ance tra9+ program2  7v7 agrees to    
contribute sav+s to ! educational sav+s 
acc\nt adm9i/]$ by ! eligible entity "u 
?is section2  7vi7 has submitt$ a ,free 
,application = ,f$]al ,/ud5t ,aid       
7,,fafsa72 &  7vii7 meets any o!r       
eligibility crit]ia z def9$ by !        
eligible entity4  7,b7 ,prelim9>y       
eligibility ,not)/&+ subp>agraph 7,a71 a
 /ud5t may be select$ to p>ticipate 9 ! 
college mat* sav+s program on a         
prelim9>y basis & giv5 an educational   
sav+s acc\nt if ! /ud5t is f a l[-income
 family1 z det]m9$ by ! eligible entity1
 :o plans to att5d an in/itution ( high]
 education4  7#h7 ,f9ancial ,capability 
,tra9+ ,plat=m ,! t]m ,f9ancial         
,capability ,tra9+ ,plat=m means a      
program = use by a college mat* sav+s   
program c>ri$ out ) a grant "u ?is      
section t-- 7,a7 deliv]s f9ancial       
capability tra9+ to p>ticipat+ /ud5ts t 
is design$ to help /ud5ts improve _!    
f9ancial capability & ov]all f9ancial   
well-be+2  7,b7 includes an initial     

assessm5t to id5tify individual le>n+   
goals & objectives2  7,c7 creates a     
p]sonal & dynamic le>n+ exp]i5ce = ea*  
individual p>ticipant1 includ+ ongo+    
assessm5ts z well z int]im mile/ones    
relat$ to le>n+ objectives & long]-t]m  
goals2 &  7,d7 includes modules on /ud5t
 loans1 f9ancial aid1 budget+ & cr$it1  
consum] debt1 h\s+ co/s1 retirem5t1 !   
importance ( em]g5cy sav+s1 bank+       
7includ+ *eck+ & sav+s acc\nts71 cr$it  
use & int]e/ rates1 pr$atory l5d+       
practices1 privacy1 & security1 :i* %all
 be conduct$ by or at ! direction ( !   
eligible entity4  7#i7 ,program ,guide  
,! t]m ,program ,guide means a guide t  
includes program policies & proc$ures1 a
 sav+s plan agreem5t template1 )drawal  
=m template1 recomm5d$ timel9es1 o!r key
 =ms1 & ! /ructure = implem5t+ & report+
 program results = a college mat* sav+s 
program c>ri$ out ) a grant "u ?is      
section4  7#aj7 ,report+ ,da%bo>d ,! t]m
 ,report+ ,da%bo>d means a robu/ onl9e  
data portal = college mat* sav+s        

programs c>ri$ out ) a grant "u ?is     
section t-- 7,a7 all[s eligible entities
 to monitor /ud5t progress1 track       
a*ievem5t1 & measure relevant behavioral
 *ange2  7,b7 /&>dizes & facilitates    
/ud5t evaluation across p>ticipat+      
in/itutions2 &  7,c7 is 9 compliance ) !
 requirem5ts ( section #ddd ( ! ,g5]al  
,education ,provisions ,act 7commonly   
kn[n z ! #8,family ,educational ,rights 
& ,privacy ,act ( #aigd'74  7#aa7       
,success ,coa*+ ,model ,! t]m ,success  
,coa*+ ,model includes-- 7,a7 f9ancial  
capability tra9+ to address budget+1    
manag+ /ud5t debt1 sav+s1 debit         
managem5t1 cr$it c>ds1 retirem5t        
read9ess1 & cr$it reports2  7,b7 college
 read9ess tra9+ t provides m5tor+ to    
help /ud5ts be bett] prep>$ = ! *all5ges
 ( po/second>y education2 &  7,c7       
work=ce read9ess tra9+ to le>n          
int]view+1 resume skills1 & c>e]        
exploration4  7#ab7 ,secret>y ,! t]m    
,secret>y means ! ,secret>y (           
,education4  #e4 ,college sav+s         

demon/ration grant program  7a7 ,grant  
e/abli%$  7#a7 ,9 ,g5]al ,n lat] ?an #i 
mon?s aft] ! date ( enactm5t ( ?is ,act1
 ! ,secret>y %all e/abli% a college     
mat*$ sav+s demon/ration grant program  
describ$ 9 ?is section1 ?r\gh :i* !     
,secret>y %all aw>d grants1 on a        
competitive basis1 to eligible entities 
to enable ^? eligible entities to c>ry  
out ! activities describ$ 9 subsection  
7e74  7#b7 ,tools = grantees ,!         
,secret>y %all develop ! ,report+       
,da%bo>d1 ,f9ancial ,capability ,tra9+  
,plat=m1 ,program ,guide1 & ,success    
,coa*+ ,model & make ^? tools available 
to grantees4  7#c7 ,pell eligibility n  
affect$ ,! ,secret>y %all ensure t1     
not)/&+ any o!r provision ( law-- 7,a7  
p>ticipation 9 ! grant program %all n   
affect a /ud5t's eligibility = a ,f$]al 
,pell ,grant2 &  7,b7 funds deposit$ 9  
an educational sav+s acc\nt by a        
p>ticipat+ /ud5t1 z well z any mat*+    
funds "u ?is section1 %all n be consid]$
 :5 a det]m9ation is made ab\t t /ud5t's

 eligibility = ,f$]al /ud5t aid "u title
 ,,iv ( ! ,high] ,education ,act ( #aife
 7#bj ,u4,s4,c4 #ajgj et seq471 includ+ 
= a ,f$]al ,pell ,grant4  7b7           
,application ,an eligible entity t      
desires to p>ticipate 9 ! grant program 
%all submit an application to !         
,secret>y at su* "t1 9 su* mann]1 &     
conta9+ su* in=mation z ! ,secret>y may 
det]m9e1 includ+1 at a m9imum-- 7#a7 a  
demon/ration (-- 7,a7 a commitm5t (     
non-,f$]al mat*+ funds at a ratio ( #a3a
 7:i* non-,f$]al funds may be provid$ by
 an entity o!r ?an ! eligible entity72  
7,b7 ! ability to laun* & implem5t !    
program2 &  7,c7 a plan = compliance )  
evaluation & program monitor+2 &  7#b7  
an assurance t ! applicant w utilize !  
,report+ ,da%bo>d1 ,f9ancial ,capability
 ,tra9+ ,plat=m1 & ,success ,coa*+      
,model develop$ by ! ,secret>y "u       
subsection 7a77#b74  7c7 ,selection     
7#a7 ,priority ,9 select+ eligible      
entities to p>ticipate 9 ! grant        
program1 ! ,secret>y %all give priority 

to eligible entities t-- 7,a7 t>get     
individuals at a /atewide level )       
networks ( p>ticipat+ eligible          
educational in/itutions2 &  7,b7 commit 
to support+ select$ eligible /ud5ts     
?r\gh ! /ud5t's graduation f an         
in/itution ( high] education4  7#b7     
,div]sity ( projects ,! ,secret>y %all  
ensure1 to ! maximum ext5t practical1 t 
! grants aw>d$ "u ?is section include   
eligible entities t repres5t a range (  
communities 7bo? rural & urban7 & div]se
 populations4  7d7 ,am\nt ,a grant aw>d$
 "u ?is section %all be 9 an am\nt n to 
exce$ ! less] (-- 7#a7 ! aggregate am\nt
 ( funds committ$ z mat*+ contributions 
f non-,f$]al public or private sector   
s\rces2 or  7#b7 #aj1jjj1jjj4  7e7 ,uses
 ( funds  7#a7 ,9 ,g5]al ,an eligible   
entity receiv+ a grant "u ?is section   
%all use ! grant funds to-- 7,a7 select 
eligible /ud5ts1 or /ud5ts :o may h     
prelim9>y eligibility1 9 ! ,/ate 9 :i* !
 eligible entity is locat$ to p>ticipate
 9 ! grant program2  7,b7 provide       

select$ /ud5ts ) f9ancial lit]acy       
education us+ ! ,success ,coa*+ ,model2 
7,c7 aft] ensur+ t a select$ eligible   
/ud5t or select$ /ud5t ) prelim9>y      
eligibility has complet$ an agreem5t    
reg>d+ ! t]ms & conditions ( !          
educational sav+s acc\nt1 e/abli% an    
educational sav+s acc\nt = ea*          
p>ticipat+ eligible /ud5t or /ud5t :o   
has prelim9>y eligibility & all[ /ud5ts 
& _! families to deposit funds 9 t      
acc\nt to save = att5dance at an        
eligible educational in/itution2 &  7,d7
 res]ve mat*+ funds = p>ticipat+ /ud5ts 
9 accordance ) p>agraph 7#b74  7#b7     
,mat*+ funds  7,a7 ,9 ,g5]al ,= ea* #a t
 a /ud5t or /ud5t's family contributes  
to ! /ud5t's educational sav+s acc\nt = 
an academic ye>1 up to a maximum ( #ejj 
9 contributions1 ! eligible entity %all 
pay #h to ! /ud5t's individual acc\nt at
 ! /ud5t's eligible educational         
in/itution once t /ud5t meets !         
requirem5ts ( section #d7g77;,a74  7,b7 
,c>ry ov] ,any am\nts t a /ud5t or      

/ud5t's family contributes to su* acc\nt
 t are above #ejj = t ye> may be c>ri$  
ov] & consid]$ z contributions t are    
eligible to be mat*$ 9 accordance )     
subp>agraph 7,a7 = ! foll[+ ye>4  7,c7  
,)drawal f s*ool ,if a p>ticipat+ /ud5t 
)draws f an eligible in/itution dur+ !  
drop-add p]iod at t eligible in/itution1
 ! /ud5t %all be responsible = any      
am\nts ow$ = t academic p]iod & w n     
receive mat*+ funds = t academic p]iod4 
7,d7 ,delay ( att5dance2 ext5uat+       
circum/ances ,subject to p>agraph 7#c71 
ea* eligible entity %all describe 9 !   
agreem5t "u p>agraph 7#a77;,c7 !        
eligible entity's policy reg>d+ !       
availability ( mat*+ funds 9 ! ev5t a   
/ud5t decides to delay att5dance at an  
eligible in/itution or 9 ! case (       
ext5uat+ circum/ances1 su* z illness ( a
 /ud5t4  7#c7 ,return ( deposit$ funds  
7,a7 ,9 ,g5]al ,ea* eligible entity %all
 ensure t a p>ticipat+ /ud5t1 includ+ a 
/ud5t ) prelim9>y eligibility1 :o does n
 meet or ma9ta9 ! requirem5ts ( section 

#d7g77;,a7 %all be entitl$ to )draw     
funds t ! /ud5t or ! /ud5t's family     
contribut$ to ! educational sav+s acc\nt
 9 accordance ) ! t]ms & conditions t   
are conta9$ 9 ! agreem5t = t educational
 sav+s acc\nt1 z describ$ 9 p>agraph    
7#a77;,c74  7,b7 ,expiration ,on ! date 
t is #f ye>s aft] ! date on :i* a       
p>ticipat+ eligible /ud5t fir/ enroll$ 9
 an eligible educational in/itution1 t  
/ud5t's p>ticipation 9 ! college mat*$  
sav+s demon/ration grant program %all   
t]m9ate4 ,! eligible entity %all cease  
res]v+ mat*+ funds on behalf ( t /ud5t z
 describ$ 9 p>agraph 7#a77;,d74 ,any    
rema9+ funds t ! /ud5t or ! /ud5t's     
family deposit$ 9 an educational sav+s  
acc\nt %all be made available = )drawal 
9 accordance ) subp>agraph 7,a74  7#d7  
,managem5t co/s ,an eligible entity     
receiv+ a grant "u ?is section may use n
 m ?an #e p]c5t ( grant funds =         
managem5t co/s1 :i* may include         
nonadm9/rative & adm9i/rative functions1
 includ+ program managem5t1 report+     

requirem5ts1 recruitm5t & enrollm5t (   
individuals1 & monitor+4  7f7 ,data %>+ 
,an eligible entity receiv+ a grant "u  
?is ,act %all ent] into a data %>+      
agreem5t ) eligible in/itutions 9 ord]  
to ex*ange data necess>y to c>ry out !  
activities describ$ 9 ?is section4 ,su* 
data %>+ %all be c>ri$ out 9 a mann] t  
complies ) ! requirem5ts ( section #ddd 
( ! ,g5]al ,education ,provisions ,act  
7commonly kn[n z ! #8,family            
,educational ,rights & ,privacy ,act (  
#aigd'74  7g7 ,annual progress reports  
,ea* eligible entity receiv+ a grant "u 
?is section %all prep>e & submit to !   
,secret>y an annual progress report     
conta9+ ! foll[+ in=mation1 9 !         
aggregate & 9 a mann] t protects        
p]sonally id5tifiable in=mation 9       
accordance ) ,f$]al privacy laws3 7#a7  
,! numb] & *>act]i/ics ( p>ticipat+     
eligible /ud5ts mak+ a deposit into an  
educational sav+s acc\nt4  7#b7 ,data on
 program goals & a*ievem5ts includ+     
enrollm5t rates1 fir/-ye> ret5tion      

rates1 program completion1 av]age ,f$]al
 /ud5t loan debt1 & %>e ( /ud5ts borr[+ 
,f$]al /ud5t loans4  7#c7 ,! am\nt t !  
eligible entity has res]v$ 9 accordance 
) subsection 7e77#a77;,d74  7#d7 ,!     
aggregate am\nts deposit$ 9 educational 
sav+s acc\nts by /ud5ts & _! families1  
)\t includ+ any p]sonally id5tifiable   
in=mation4  7#e7 ,:at s]vice            
configurations ( ! eligible entity 7su* 
z configurations relat+ to pe] support1 
/ructur$ plann+ ex]cises1 m5tor+1 & case
 managem5t7 increas$ ! rate & consi/5cy 
( p>ticipation 9 ! demon/ration project 
& h[ su* configurations v>i$ among      
diff]5t populations or communities4     
7#f7 ,su* o!r in=mation z ! ,secret>y   
may require to evaluate ! demon/ration  
project4  7h7 ,report to ,congress ,n   
lat] ?an #ab mon?s aft] ! e/abli%m5t (  
?is demon/ration project1 ! ,secret>y ( 
,education %all prep>e & submit to      
,congress a report conta9+ ! foll[+     
in=mation3 7#a7 ,! effects ( inc5tives &
 organizational or in/itutional support 

on college ret5tion 9 ! demon/ration    
project4  7#b7 ,! sav+s rates (         
individuals 9 ! demon/ration project1 9 
! aggregate & disaggregat$ by           
demographic *>act]i/ics includ+ g5d]1   
age1 family size1 race or e?nic         
backgr\nd1 & income4  7#c7 ,! effects ( 
educational sav+s acc\nts on sav+s      
rates1 college ret5tion & completion1 & 
h[ su* effects v>y among diff]5t        
populations or communities4  7#d7 ,!    
lessons to be le>n$ f ! demon/ration    
projects conduct$ "u ?is ,act & :e!r a  
p]man5t college sav+s grant program %\ld
 be e/abli%$4  7#e7 ,! *>act]i/ics (    
educational sav+s acc\nts 7su* z ?re%old
 am\nts & mat* rates7 requir$ to        
/imulate p>ticipation 9 ! demon/ration  
project1 & h[ su* *>act]i/ics v>y among 
diff]5t populations or communities4     
7#f7 ,su* o!r factors z may be prescrib$
 by ! ,secret>y4  7i7 ,te*nical         
assi/ance ,! ,secret>y ( ,education may 
res]ve n m ?an #aj p]c5t ( ! am\nts     
appropriat$ "u ?is section to provide   

te*nical assi/ance to eligible entities 
receiv+ grants "u ?is ,act4  #f4        
,au?orization ( appropriations ,!re are 
au?oriz$ to be appropriat$ to c>ry out  
?is ,act #ajj1jjj1jjj = fiscal ye> #bjbj
 & ea* ( ! succe$+ #d ye>s4